1     
TOBACCO SETTLEMENT FUNDS AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Bradley G. Last

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions relating to the Tobacco Settlement Trust Fund.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends amounts that must be appropriated for the statewide expansion of the drug
13     court program from the Tobacco Settlement Restricted Account within the General
14     Fund;
15          ▸     redirects 40% of tobacco settlement funds received by the state on or after July 1,
16     2020, from the General Fund to the Permanent State Trust Fund established under
17     Utah Constitution Article XXII, Section 4; and
18          ▸     makes clarifying changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          51-9-201, as last amended by Laws of Utah 2014, Chapter 96
26          51-9-202, as last amended by Laws of Utah 2013, Chapter 211
27     

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 51-9-201 is amended to read:
30          51-9-201. Creation of Tobacco Settlement Restricted Account.
31          (1) There is created within the General Fund a restricted account known as the
32     "Tobacco Settlement Restricted Account."
33          (2) The account shall earn interest.
34          (3) The account shall consist of:
35          (a) funds deposited into the account before July 1, 2020;
36          (b) [on and after July 1, 2007,] 60% of [all] funds [of every kind that are] received by
37     the state on or after July 1, 2020, that are related to the settlement agreement that the state
38     entered into with leading tobacco manufacturers on November 23, 1998; and
39          [(b)] (c) interest earned on the account.
40          (4) To the extent that funds will be available for appropriation in a given fiscal year,
41     those funds shall be appropriated from the account in the following order:
42          (a) $66,600 to the Office of the Attorney General for ongoing enforcement and defense
43     of the Tobacco Settlement Agreement;
44          (b) $18,500 to the State Tax Commission for ongoing enforcement of business
45     compliance with the Tobacco Tax Settlement Agreement;
46          (c) $10,452,900 to the Department of Health for:
47          (i) children in the Medicaid program created in Title 26, Chapter 18, Medical
48     Assistance Act, and the Children's Health Insurance Program created in Section 26-40-103; and
49          (ii) for restoration of dental benefits in the Children's Health Insurance Program;
50          (d) $3,847,100 to the Department of Health for alcohol, tobacco, and other drug
51     prevention, reduction, cessation, and control programs that promote unified messages and
52     make use of media outlets, including radio, newspaper, billboards, and television, and with a
53     preference in funding given to tobacco-related programs;
54          (e) [$193,700] $2,519,100 to the Department of Human Services and the
55     Administrative Office of the Courts [and $2,325,400 to the Department of Human Services for
56     the statewide expansion of the drug court program], to be allocated and used in accordance
57     with Subsection 78A-5-201(3);
58          (f) $4,000,000 to the State Board of Regents for the University of Utah Health Sciences
59     Center to benefit the health and well-being of Utah citizens through in-state research,
60     treatment, and educational activities; and
61          (g) any remaining funds as directed by the Legislature through appropriation.
62          Section 2. Section 51-9-202 is amended to read:
63          51-9-202. Permanent state trust fund.
64          [(1) Until July 1, 2003, 50% of all funds of every kind that are received by the state
65     that are related to the settlement agreement that the state entered into with leading tobacco
66     manufacturers on November 23, 1998, shall be deposited into the permanent state trust fund
67     created by and operated under Utah Constitution Article XXII, Section 4.]
68          [(2) On and after July 1, 2003 and until July 1, 2004 20% of the funds of any kind
69     received by the state that are related to the settlement agreement that the state entered into with
70     leading tobacco manufacturers shall be deposited into the permanent state trust fund created by
71     and operated under Utah Constitution Article XXII, Section 4.]
72          [(3) On and after July 1, 2004 and until July 1, 2005, 30% of all funds of any kind
73     received by the state that are related to the settlement agreement that the state entered into with
74     leading tobacco manufacturers shall be deposited into the General Fund Budget Reserve
75     Account created in Section 63J-1-312.]
76          [(4) On and after July 1, 2005 and until July 1, 2007, 25% of all funds of any kind
77     received by the state that are related to the settlement agreement that the state entered into with
78     leading tobacco manufacturers shall be deposited into the permanent state trust fund created by
79     and operated under Utah Constitution Article XXII, Section 4.]
80          [(5) On and after July 1, 2007, 40% of all funds of every kind that are received by the
81     state that are related to the settlement agreement that the state entered into with leading tobacco
82     manufacturers on November 23, 1998, shall be deposited into the General Fund and the
83     remaining funds deposited as directed.]
84          (1) 40% of funds received by the state on or after July 1, 2020, that are related to the
85     settlement agreement that the state entered into with leading tobacco manufacturers on
86     November 23, 1998, shall be deposited into the permanent state trust fund established under
87     Utah Constitution Article XXII, Section 4.
88          [(6)] (2) Funds in the permanent state trust fund shall be deposited or invested pursuant
89     to Chapter 7b, Investment of Permanent State Trust Fund Money.
90          [(7)] (3) (a) In accordance with Utah Constitution Article XXII, Section 4, the interest
91     and dividends earned annually from the permanent state trust fund shall be deposited in the
92     General Fund. There shall be transferred on an ongoing basis from the General Fund to the
93     permanent state trust fund created under Utah Constitution Article XXII, Section 4, an amount
94     equal to 50% of the interest and dividends earned annually from the permanent state trust fund.
95     The amount transferred into the fund under this Subsection [(7)] (3)(a) shall be treated as
96     principal.
97          (b) Any annual interest or dividends earned from the permanent state trust fund that
98     remain in the General Fund after the transfer to the Permanent State Trust Fund under
99     Subsection [(7)] (3)(a) may be appropriated by the Legislature.
100          (c) Any realized or unrealized gains or losses on investments in the permanent state
101     trust fund shall remain in the permanent state trust fund.
102          [(8)] (4) This section does not apply to funds deposited under Chapter 9, Part 3,
103     Infrastructure and Economic Diversification Investment Account and Deposit of Certain
104     Severance Taxes into Permanent State Trust Fund Act, into the permanent state trust fund.